Harbinger Capital

  • Phil Falcone

    News

    Christmas Comes Early At Casa De Falcone

    Phil knew that this was more than just a threat. In all the years they’d […]

    / Nov 25, 2014 at 1:59 PM
  • Phil Falcone

    News

    Ex-Harbinger COO Settles With SEC For Hitching Wagon To Falcone-Shaped Star

    Remember, back in 2009, when Phil Falcone loaned himself $113 million from a gated investor […]

    / Jul 29, 2014 at 1:40 PM
  • phil falcone

    News

    Phil Falcone Insists FCC Do What He Cannot

    Falcone, whose Harbinger Capital hedge fund owns the bankrupt LightSquared, a high-speed wireless start-up, is […]

    / May 30, 2014 at 4:11 PM
  • philfalcone

    News

    Phil Falcone Doesn’t Need Any Maror On His Seder Plate Next Week

    Not just because he’s not Jewish, but also because, according to Dealbook, he’s already got […]

    / Apr 11, 2014 at 5:18 PM
  • philfalcone

    News

    5 Year Ban From The Securities Industry Not As Much Of A Hindrance To Doing Business As One Might’ve Thought

    Richard Handler’s Leucadia National Corp. (LUK) added $253 million to its investment in Philip Falcone’s […]

    / Mar 18, 2014 at 6:13 PM
  • News

    Billionaire Hedge Fund Managers Want Gold iPhones Too Ya Know

    Phil Falcone has apparently found yet another bright side to being banned from the securities […]

    / Sep 20, 2013 at 6:54 PM
  • lisafalconeballet

    News

    Lisa Marie Falcone Is Back, Baby!

    Thought a little $18 million fine and a 5-year ban from the securities industry for […]

    / Sep 20, 2013 at 5:16 PM
  • philfalcone

    News

    Judge In Agreement That Phil Falcone Should Probably Take 5

    Billionaire hedge-fund manager Philip Falcone’s $18 million settlement with U.S. regulators that includes a five-year […]

    / Sep 17, 2013 at 12:19 PM
  • ovationhall

    News

    The Yet-To-Be Finished Memoir Of Wilbur P. Falcone: Part II

    The light streaming into the hotel room blinded Wilbur. Or at least she thought it […]

    / Aug 21, 2013 at 5:54 PM
  • Phil-Falcone

    News

    Phil Falcone’s Ban From The Securities Industry Not So Much A Ban As It Is A Blessing, Says Phil Falcone

    “I believe putting these issues behind me now is the best course of action for […]

    / Aug 20, 2013 at 1:03 PM
  • philfalconeofficehockeystick-260x3371

    News

    Phil Falcone Can Now Devote Himself Full Time To Building A Low-Cost Wireless Network That’s Going To Blow Your Mind

    Remember, back in 2009, when Phil Falcone’s personal accountants realized that the hedge fund manager […]

    / Aug 19, 2013 at 5:07 PM
  • 0509-Falcone-630x420

    News

    Phil Falcone Is Just Going To Start Suing Everyone

    Once the Harbinger founder got a taste of how good it felt to serve someone […]

    / Aug 9, 2013 at 3:51 PM
  • so less fraud then?

    Hedge Funds

    SEC Changes Its Mind About Deal With Phil Falcone That Included “Go Ahead And Keep Committing Fraud” Provision

    Poor guy: The Securities and Exchange Commission overruled its own enforcement division’s decision to settle […]

    / Jul 19, 2013 at 2:13 PM
  • phil_falcone

    News

    Harbinger Group Now Dabbling In Women’s Lingerie

    Naturally.

    / Mar 19, 2013 at 1:39 PM
  • News

    Phil Falcone Will Borrow Hundreds Of Millions Of Dollars From Any Gated Investor Fund He Pleases

    Phil Falcone, as some of you may know, has made some mistakes in the last couple years. Pouring his investors’ money into a wireless start-up that may or may not ever get off the ground. Offering those who wanted out illiquid LightSquared equity instead of cash. Not getting his wife a driver for party-time.  If you’re wondering why we haven’t mentioned the time he borrowed $113 million from a gated fund in order to pay personal taxes, which he had not set aside enough money to cover, it’s because Phil doesn’t count it as a mistake, regardless of what you, or the SEC, or anyone else says.

    Hedge-fund manager Philip Falcone and his firm, Harbinger Capital Partners LLC, formally signaled their intent to seek the dismissal of fraud charges filed against them earlier this year by securities regulators, according to people familiar with the case. In June, the Securities and Exchange Commission filed civil charges accusing Mr. Falcone of putting his own interests, including maintaining a “lavish lifestyle,” ahead of those of Harbinger’s investors. The agency accused Mr. Falcone, Harbinger and Harbinger’s former operating chief, Peter Jenson, of misleading investors and an outside law firm when Mr. Falcone took out a $113.2 million loan in 2009 from a Harbinger fund to pay his personal taxes, even as other investors in the fund were prevented from pulling their money.

    Lawyers for Mr. Falcone and Harbinger sent a letter to Judge Paul Crotty of U.S. District Court in Manhattan Friday, the deadline for responding to the SEC’s complaint, saying they intended to seek dismissal, the people said. The letter also summarized arguments for the dismissal. Mr. Jenson also filed a letter Friday through his lawyers saying he intended to seek dismissal of the complaint. Representatives of Mr. Falcone and Harbinger have said before they planned to fight the allegations. In negotiations with securities regulators leading up to the charges, they had argued that Mr. Falcone and Harbinger were simply following sound advice from their legal counsel.

    Which, for those who missed it, was: “[L]ending money to principals is not part of the fund’s investment program” and “a loan . . . will never be a good idea” and “[We are] unequivocally against the loan idea for a number of reasons.”

    Falcone To Seek Case’s Dismissal [WSJ]
    Earlier: Phil Falcone’s Alleged Piggish Behavior Made Him Some Enemies

    / Oct 1, 2012 at 3:08 PM
  • News

    Harbinger Capital-Backed LightSquared: What If We Told You We Could Build A Wireless Network That Doesn’t Kill People Via GPS Interference? Does That Sound Like Something You’d Be Interested In?

    As many of you know, the last year or so has been a pretty tough one for Phil Falcone. In addition to a civil suit against him by Harbinger Capital investors, DWAI’s on the home front, and the pesky matter of being charged with securities fraud by the SEC, which would like to see him banned from the industry, what’s really been plaguing him has been the opposition encountered by LightSquared, his dream and the thing he’s more or less staked all his and his investors’ money on. Before it entered Chapter 11 bankruptcy in May, the most serious charge against the company was that while it may seek to create “convenient connectivity for all,” in doing so, the odds are high it would GPS interference that would result in boats getting lost at sea; “degrade precision services that track hurricanes, guide farmers, and help build flood defenses“; and, according to the FAA, “cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.” Now, four months later, the would-be wireless network has come back with a plan: LightSquared, but without all the bad parts (for now).

    Philip Falcone’s LightSquared on Friday made a proposal to the Federal Communications Commission that the company hopes will solve the regulatory issues surrounding its wireless satellite network and help it build its business faster without abandoning its long-term goals…LightSquared filed to modify its license application so it can use its five megahertz of spectrum that haven’t caused GPS worries. It also seeks to use another five that it would share with federal-government users. The other filing, a rulemaking petition, calls for LightSquared to forego using the “upper” 10 MHz that have caused GPS concerns. In the meantime, it still wants the FCC to consider use of that 10 MHz but agreed to wait for and cooperate with “operating parameters and revised rules for terrestrial use of this spectrum.”

    Don’t get them wrong, they *want* to use the stuff that’s possibly GSP harmful, but in the meantime will be happy to use the stuff that isn’t, if that works for everyone.

    LightSquared Proposes Sharing Wireless Network With Government [DowJones]

    / Sep 28, 2012 at 2:29 PM
  • News

    Bonus Watch ’13: LightSquared

    LightSquared is a wireless venture that seeks to create “convenient connectivity for all.” Unfortunately, as the Wilbur Falcone fans among us know, it’s looking like it’ll be a dark day in hell before that happens, on account of bunch of forces working together to shut this thing down at every turn, including but not limited to the yachting community that claims GSP interference caused by LS will result in boats getting lost at sea; the National Oceanic Atmospheric Administration, which has said LightSquared “may degrade precision services that track hurricanes, guide farmers and help build flood defenses”; and the FAA, which recently put out a study estimating LS could “cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.” Also not helping is that LightSquared filed for bankruptcy in May, the company is blowing through cash faster than Wilbur’s Studio 54 days, and senior executives won’t stop quitting. While some people might take stock of the situation and decide, at this point, to throw in the towel, Wilbur Falcone’s benefactor is not some people. He’s making this thing work if it’s the last thing he does. So, what to do? Obviously a couple of miracle workers are going to be needed and the thing about miracle workers is that they don’t come cheap. Gotta spend money to make money.

    Troubled wireless-satellite company LightSquared wants permission to dole out up to nearly $6 million in cash bonuses to four of its top employees, including its interim chief executive. Recent months have seen LightSquared burn through money–it has spent $134.3 million since filing for bankruptcy in May, according to its most recent monthly operating report, and executives alike. In court papers filed Wednesday, LightSquared said four senior executives have left the company in the past six months, including its former chairman of the board and CEO. The company wants to make sure four “irreplaceable employees” stick with the company as it attempts to claw its way out of bankruptcy protection and help to make the reorganization as fast and cheap as possible. LightSquared’s bonus proposal paves the way for a “total possible cash payout of approximately $5.985 million” over two years, according to a filing with the U.S. Bankruptcy Court in Manhattan. Four employees–interim CEO, president and chairman of the board Douglas Smith; Chief Financial Officer Marc R. Montagner; general counsel Curtis Lu; and its executive vice president, regulatory affairs & public policy Jeffrey Carlisle–would be eligible for incentives consisting of cash and restricted stock units paid in shares of the company’s current common stock.

    If the executives satisfy cash preservation goals, make progress in LightSquared’s efforts to resolve certain regulatory issues and emerge from bankruptcy by the end of 2013, they’ll receive vesting of all issued stock and “aggregate incentive payments of cash up to 285% of each such key employee’s annual salary,” LightSquared said. Hitting less aggressive goals, like exiting bankruptcy by the end of June 2014, would come with smaller payouts, like a cash bonus equal to 100% of the executives’ annual salary, in the case of the mid-2014 bankruptcy exit. Mr. Smith currently makes $700,000 annually; Mr. Montagner and Mr. Lu $500,000 each; and Mr. Carlisle $400,000. LightSquared said each of the employees “provides critical services, drives performance, and impacts LightSquared’s ability to enhance value in the Chapter 11 cases.” The group has also had to take on extra work recently, as more and more employees have left LightSquared both voluntarily and involuntarily. The company said its total employee headcount has dropped by 60% in the last six months. The bonus plan aims to motivate the company’s leaders to manage its businesses and working capital effectively and maximize the value of the estate for the benefit of all stakeholders, LightSquared said.

    LightSquared Seeks to Pay Key Executives up to $6M in Bonuses [DowJones]

    / Aug 30, 2012 at 4:12 PM
  • News

    Phil Falcone Is Turning His Life Around

    To put it lightly, the last couple years have been a rather dark time for Phil Falcone. Though his woes are too numerous to mention in full, they include: the adversity he’s faced in getting people to believe in LightSquared; his unbelievably pissy investors, who still aren’t over the time he borrowed $113 million from a gated fund to pay personal taxes, or offered to pay out redemptions in illiquid LightSquared equity; the Securities and Exchange Commission, which wants him banned from the industry for life; the woman who once offered a respite from it all, who now won’t even come out of her room when she knows he’s home; and, of course, the plunging returns in his once highly profitable hedge fund. It would be enough to make a grown man say ‘Fuck, it. I’m done.’ Put a few things in a sack, tie it to the blade of a hockey stick, and hitchhike back to Minnesota. But Phil didn’t do that and now? After a merciless storm of shit that felt like it would never ease up? After long days of investors and regulators breathing down his neck and nights of having to pound on the front door because he was accidentally purposely locked out of the house? The tide feels like it’s turning for Philip Falcone.

    Beleaguered hedge fund honcho Phil Falcone’s big bet on his own publicly traded entity, Harbinger Group, is helping to lift his troubled hedge fund, Harbinger Capital Management, out of the deep end. Falcone’s flagship fund posted returns of 10.6 percent in July and a whopping 28 percent gain in June.

    Of course, he’s still down 5.8 percent year-to-date, and the the director of the SEC’s division of enforcement wants hedge fund graduate schools to use Harbinger as a case study during the unit on “how to operate a hedge fund unlawfully,” but tonight? Tonight he tells Lisa to treat herself to something nice. Tonight he tells Wilbur to pull the baby grand out of the closet, where it’s sat untouched for months. Tonight his key works in the lock. Tonight we dance.

    Phil Helps Himself [NYP]

    / Aug 16, 2012 at 11:23 AM
  • News

    Phil Falcone Feels Like He Needs To Take A Restraining Order Out On LightSquared Lenders

    LightSquared’s lenders on Tuesday will take their fight to probe the troubled wireless venture’s main […]

    / Aug 13, 2012 at 1:56 PM
  • News

    SEC: Phil Falcone Has A Lot Of Wisdom To Impart, Re: How To Be A Fraud

    “Today’s charges read like the final exam in a graduate school course in how to […]

    / Jun 27, 2012 at 3:10 PM
  • News

    Securities And Exchange Commission Makes Good On Promise To Sue Phil Falcone

    And as promised, Falcone will be fighting the charges. He wants to “borrow” $113 million […]

    / Jun 27, 2012 at 2:42 PM
  • News

    Securities And Exchange Commission Still Hung Up About The Time Phil Falcone Borrowed Money From A Gated Fund To Pay Personal Taxes

    Remember the time Harbinger Capital Partners founder Phil Falcone was a little short on cash, and decided to “borrow” $113 million from a fund in which redemptions had been suspended in order to pay personal taxes? Unfortunately for Big P, the SEC does. (The regulator also recalls he time he allegedly played favorites with Goldman and allegedly manipulated some markets.)

    Philip Falcone, the billionaire founder of Harbinger Capital Partners LLC, faces a lawsuit from U.S. regulators as soon as this week over claims he improperly borrowed client funds to pay his taxes and gave preferential treatment to Goldman Sachs Group Inc., according to two people familiar with the matter. Falcone, 49, may also face a market manipulation claim related to trading in bonds of MAAX Holdings Inc., said the people, who asked not to be identified because the matter isn’t public. The Securities and Exchange Commission voted to authorize enforcement staff to file the case, the people said.

    While perhaps not the best news Falcone has received in a while, it likely does not come as a surprise, as the SEC has been talking about the aforementioned offenses since last December (when they tried to get him banned from the securities industry). Either way, Phil, who should probably just not going home tonight unless he wants an earful, is planning to “contest to the suit.”

    SEC Said To Authorize Lawsuit Against Harbinger’s Falcone [Bloomberg]

    / Jun 26, 2012 at 3:03 PM
  • News

    LightSquared Is Just Taking A Breather Is All

    Bankruptcy “is intended to give LightSquared sufficient breathing room to continue working through the regulatory […]

    / May 14, 2012 at 5:24 PM
  • Hedge Funds

    Phil Falcone Reveals Genius New Plan (Update)

    LightSquared is a wireless venture that seeks to create “convenient connectivity for all.” But those of you who’ve been keeping up know that to one man, it’s so much more. That man, of course, being hedge fund manager Phil Falcone. LightSquared is his dream. His baby. His world. His everything. And, because he has poured his heart, soul, and firm’s money into LightSquared, it is also the thing that stands to make or break Harbinger Capital. Success will mean billions for Falcone and his investors. Failure will mean Wilbur Falcone selling her eggs to a barren couple willing to pay top dollar for the DNA of a blue-eyed classically trained singer with an IQ of 150 and legs like Tina Turner.

    Unfortunately, things have not been going so well for LightSquared. The yachting community worries that GPS interference caused by LS will result in boats getting lost at sea. The National Oceanic and Atmospheric Administration says LightSquared“may degrade precision services that track hurricanes, guide farmers and help build flood defenses.” The FAA put out a study that estimates LS could “cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.” The only person defending the thing (besides Phil) is Karl Rove. Meanwhile, the SEC wants to see Falcone banned from the industry, Bloomberg News has put a reporter on the “Phil Falcone Pit Stains” beat, and his investors, for the most part, despise him for petty reasons that no rational adults would ever get upset about, like borrowing $113 million from a gated fund in order to pay personal taxes and tying up much of their capital in a side project building walkie-talkies that might not pan out on account of the growing opinion that it might kill a few people.

    At this time, a lesser man might decide to cut his losses and/or look within and say “Maybe my investors aren’t the problem, maybe I’m the problem.” Phil Falcone is no such man. He’s figured out a few things and what they boil down to is that his impatient, pissy investors are what is standing in the way of LightSquared soaring, which it will, when it is ready. And if those pricks won’t agree to stick around for an investment time horizon of inifinty, he’ll find people who will.

    Harbinger Capital Partners’ Philip Falcone, speaking at the SALT hedge-fund conference Wednesday in Las Vegas, hinted at an initial public offering, CNBC’s Kate Kelly reported. “Harbinger is actually considering getting more permanent capital,” Falcone said, according to Kelly, who said it suggests a potential IPO. “I’m moving toward a more permanent capital vehicle. We need to focus more on control,” Falcone said, according to Kelly.

    No one said going from not having the cash to cover taxes to $25 billion was going to be easy.

    Harbinger’s Falcone hints at potential IPO -CNBC [MarketWatch]

    Update: Falcone claims to have no idea what CNBC is talking about (asking Fox Business, “What the fuck would I IPO?”)

    / May 9, 2012 at 5:26 PM
  • Hedge Funds

    The Only Thing That Keeps Phil Falcone Up At Night Is Counting All The Money He’s Going To Make Off Of LightSquared

    From outward appearances, the past couple years have been a stressful time for Phil Falcone. After making billions of dollars for himself and for his investors on subprime, the Harbinger Capital Partners founder provoked the ire of many a client by tying up a good chunk of their money in a wireless start-up called LightSquared (a company the Federal Communications Commission is no fan of, due to the fact that it reportedly interferes with GPS devices used on land, sea, and in outer space), by borrowing $113 million from a gated fund in order to pay personal taxes, and by only allowing certain investors (Goldman Sachs) to get out while freezing redemptions for others and then telling them they could leave if they found some else to pick up their stake. Assets under management at Harbinger have dropped $23 billion, from a peak of $26 billion. For a variety of reasons, the Securities and Exchange commission wants to see him banned from the industry. A worried Bloomberg News reporter recently revealed he has a problem with pit stains (“[his] shirt appeared darker under the arms in his office last month”), which wouldn’t pose an issue were his shirt supply not dwindling rapidly (“One place Falcone is visiting less frequently is Domenico Vacca, the New York boutique where suits retail for $3,900 and shirts $490, according to a person with knowledge of his purchases. He orders every four or five months [now] compared with every two or three months between 2006 and 2009″).

    For all these reasons and more (like, say, a sensitive and highly-strung pig who is not happy), some people might assume that Falcone would at best be in deep contemplative mode regarding how things got this far at worst be freaking the fuck out, particularly over the possibilities that 1) the SEC is going to file civil fraud charges and 2) if LightSquared doesn’t pan out, he’s going to lose a whole lot of money. Those people, however, would be wrong. Not only is he not at all worried that his passion project won’t work out ( “I am not losing sleep on this — why would I lose sleep?” he asked Bloomberg), but he dares anyone to come up with a reason for why he’s not going to make $20+ billion on this thing.

    “This is not for the faint of heart,” Falcone said. “I’ve never looked at it as having $4 billion or $25 billion as defining Philip Falcone. But who’s to say I won’t get back to $25 billion?”

    What? It could happened. You don’t know.

    Falcone Waits for Icahn Doubling Down on Network [Bloomberg]

    / Apr 16, 2012 at 1:32 PM
  • News

    Try This For A Financial Sanction: Phil Falcone Isn’t Going Anywhere

    But Mr. Falcone and the SEC appear divided on two crucial questions, according to people […]

    / Apr 12, 2012 at 3:56 PM
  • philfalconeofficehockeystick

    Hedge Funds

    Phil Falcone Hasn’t Given Up On LightSquared

    …and he hopes investors haven’t either, not that they have much choice in the matter. If recent performance has been difficult to swallow, comfort thyself with the fact that lots of things get worse before they get better. Falcone is giving this thing 150% and its genius will reveal itself in due time.

    Hedge fund manager Philip Falcone’s clients got another dose of bad news when the billionaire investor said his flagship fund lost 29.6 percent in February largely because of ailing telecommunications company LightSquared Inc…Falcone often takes his time, relative to other hedge fund managers, in releasing monthly performance numbers…Falcone, who has bank rolled the company by having invested over $3 billion, held out hope for LightSquared’s future when he told investors on an investor call in mid-February that he remained committed to the project.

    [Reuters]

    / Mar 26, 2012 at 7:24 PM
  • LightBoxBideaweeBallHonoringDr.LewisBerman3_LFalconePFalcone_05

    News

    The Yet-To-Be Finished Memoir Of Wilbur P. Falcone

    Wilbur glanced down at her watch. 12:13. Usually, she hated when people were late and, under normal circumstances, this would have gone beyond the point of what she’d tolerate. Hell, make her wait more than 5 or 6 minutes and you were ensuring you’d be receiving a series of irate texts inquiring sharply as to “WHERE THE HELL ARE YOU??????!!???” and threatening “If you’re not here in 30 seconds I’m leaving.” But today she was practically willing Tom to continue making her wait under the bodega awning. Just another minute. Just one more minute.

    / Feb 15, 2012 at 2:56 PM